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Implications of early treatment among Medicaid patients with Alzheimer's disease
Author(s) -
Geldmacher David S.,
Kirson Noam Y.,
Birnbaum Howard G.,
Eapen Sara,
Kantor Evan,
Cummings Alice Kate,
Joish Vijay N.
Publication year - 2014
Publication title -
alzheimer's and dementia
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 6.713
H-Index - 118
eISSN - 1552-5279
pISSN - 1552-5260
DOI - 10.1016/j.jalz.2013.01.015
Subject(s) - medicaid , institutionalisation , medicine , disease , payment , medical costs , gerontology , pediatrics , psychiatry , business , finance , health care , economics , economic growth
Objective The objective of this study was to examine the effect of treatment timing on risk of institutionalization of Medicaid patients with Alzheimer's disease (AD) and to estimate the economic implications of earlier diagnosis and treatment initiation. Methods New Jersey Medicaid claims data (1997–2009) were used retrospectively to study the effect of treatment on time to institutionalization. Observed Medicaid payments were used to calculate savings from delayed institutionalization, adjusting for cost offsets resulting from concurrent changes in use of other medical services. Results Initiation of existing therapies at earliest symptomatic onset is predicted to delay institutionalization by 91 days, reducing Medicaid costs by $19,108/institutionalized patient. Incorporating an 18.5% cost offset from increased use of other medical services as well as drug costs associated with earlier treatment results in net savings of $12,687/patient. Projected annual Medicaid savings exceed $1 billion. Conclusion Earlier treatment leads to a small delay in institutionalization among AD patients, resulting in significant costs savings to Medicaid.